fact is brown cut 4 billion in taxes. but whitman's nose keeps growing by the millions. >> couric: tonight, shattered dreams, a record number of americans lose their homes to foreclosure, but there are signs better times may be around the corner. i'm katie couric. also tonight, the party crashers. big primary victories by fringe candidates open a rift in the g.o.p. a knockdown, drag-out fight for senate in connecticut. linda mcmahon, formerly of the w.w.e., tries to take down attorney general richard blumenthal. and it's fashion week, and plus- size women have arrived. captioning sponsored by cbs from cbs news world headquarters in new york, this is the "cbs evening news" with katie couric.

>> couric: good evening, everyone. devastating news about the economy tonight. a new report just out from the census bureau shows one out of seven people in this country is living in poverty. that's more than 43 million, an increase of nearly four million in just one year. and a record number of americans have just lost their homes to foreclosure, more than 95,000 homes were repossessed last month. but before you feel completely deflated by this latest news, anthony mason tells us there are at least some signs of a turnaround, at least on the home front. >> reporter: in los angeles, so many of the 27,000 foreclosed houses have fallen into disrepair. >> we felt we needed to do something about it. >> reporter: today the city raised fines on banks that don't keep up their properties. >> it's $1,000 per day, per violation. and they can take up to $100,000 per property. >> reporter: with more than five million people behind on their mortgage payments, bank

repossessions have hit record levels. >> we're on a pace right now to see about 1.2 million homes repossessed by the end of the year. that is simply unprecedented in the history of the housing market. >> reporter: the banks have taken possession of about 900,000 homes, only about a third of which are actually on the market. >> the banks could be flooding the market with a lot more distressed properties, and i think the fact that they're not is showing some restraint in trying to keep the housing market stable. >> reporter: americans are growing more optimistic about the housing market. according it a new survey by mortgage giant fannie mae, 70% say this is a good time to buy a house. that's up from 64% in january. the problem is getting a loan. the 30-year fixed rate has been below 5% for 19 straight weeks now, but applications for new home loans actually fell last week, in part because banks have tightened their credit standards. but finally, lenders may be loosening up, according to the fed's latest survey of loan officers.

>> we saw the first easing in lending standards for prime mortgages in four years' time. so it is important progress if it can be sustained. >> reporter: but with millions of foreclosures potentially still in the pipeline, it could be another two years before we see a turnaround in the housing market. anthony mason, cbs news, new york. >> couric: now, it's not just home buyers who are having trouble getting a loan. small business owners are as well, but relief is on the way. republican senators voinovich and lemieux helped democrats break a g.o.p. filibuster of a bill that will create $30 million in credit for small businesses. the house is expected to pass it next week. the bad economy is one reason so many americans are saying it's time for a change in washington. our latest poll found 78% of registered voters believe the incumbents in the democratic- controlled congress should be tossed out.

so you would think would be a golden opportunity for republicans. but as jeff greenfield reports, after big victories these week by candidates of the tea party, the grand ole party is in turmoil. >> reporter: as christine o'donnell was celebrating her upset victory in delaware tuesday night, karl rove, one of the party's best-known voices, were pouring cold water over the tea party's hottest new stars. >> there are just a lot of nutty things she's been saying. >> reporter: after a day's worth of denunciations by rush limbaugh... >> why is he so mad at a republican? >> reporter: ...and an avalanche of e-mails, rove was on fox news again, assuring the audience he was now on board. >> i endorsed her the other night. i said i'm for the republican in each and every case. >> reporter: and sarah palin, who had endorsed four of the victorious tea party insurgents had a clear message for her establishment opponents. >> for the hierarchy, buck up or stay in the truck. and oh, you can imagine how that went over with the elite. >> reporter: it was more evidence that the tea party movement, which did not exist a year and a half ago, has now

become not just a voice but the dominant voice of the party. >> they're saying come on in now because they have to. they're already in the castle. they've come over the ramparts with their pitchforks and they've taken over. >> reporter: what makes it so potent, as liberal blogger josh marshall says, it is not some artificial organization. >> this is not ginned up by artificial donors. it's clear, whether 5% or 10% of the political nation is on fire on the right now, there's no getting around that. >> reporter: and that means that the tea party impact is likely to be felt even more after november when the campaign for the next presidential nomination begins. >> all the aspirants for 2012 in the g.o.p. are going to have to kiss the rings of the tea party. >> reporter: moderate republicans worry if the tea party movement drives the g.o.p. too far to the right, it could

jeopardize their prospects in november and in 2012. tea party supporters note except in delaware, even one of their senate candidates is february or ahead in the polls, katie. >> couric: does this mean moderate republicans are becoming an endangered species, jeff? >> you have susan colins and india snowe in maine, scot brown from massachusetts, but certainly compared to the congress of 15 or 20 years ago, there are far fewer, and in contrast, the democrats are of have not recruited a lot of moderates four years ago in the so-called blue dogs. it's driving the republicans i think the other way. >> couric: in other news, it is the last thing anyone would expect at one of this country's premiere hospitals. gunshots rang out today at johns hopkins in baltimore. police say a man became distraught while being briefed on his mother's medical condition, pulled out a semiautomatic handgun and shot the doctor. then he turned the gun on his mother and himself. when officers arrived, 50-year- old paul partis and his mother, jean, were dead. the doctor, identified as david cohen, was rushed to surgery, and is expected to survive. important health news tonight. an f.d.a. advisory panel has

rejected another highly touted diet drug. this time, dr. jon lapook reports, it's lorcaserin. >> reporter: before voting it down 9-5, the f.d.a. committee heard concerns that lorcaserin may damage the heart, cause psychiatric problems, and even promote tumor growth. yesterday, the committee split on whether the diet drug meridia should stay on the market. evidence showed an increased risk of heart attacks and stroke. meridia is one of only two prescription drugs approved for the long-term treatment of obesity. according to dr. louis aronne, a weight-loss expert who advised the makers of meridia, two drugs is not enough. >> you can try to lose weight from a diet and get demoralized and gain so much weight you need surgery and that makes no sense. we need more medical options. >> reporter: the other problem with both these drugs they're only moderately effective in helping lose weight. >> couric: i know there hasn't

been an obesity drug approved in 10 years. is there something problematic about the weight loss drugs. >> reporter: yes you're starting off with a condition-- obesity-- that already puts you at increased risk of heart attack and strokes. and even cancer. now if you take a drug that further increases these risks and is only slightly effective, than the f.d.a. is stuck with the decision of approving a drug, where the risks really may outweigh the benefits. >> couric: sounds like it. all right, dr. jon lapook, jon, thanks so much. the church of england broke from the vatican 466 years ago. today the head of the church, queen elizabeth, welcomed benedict xvi making the first official state visit ever by a pope to britain. there were two stops in scotland, including an open-air mass, before the pope flew to london. and as mark phillips reports, he spoke about one of the most serious issues facing the catholic church. >> reporter: perhaps aware that he was flying into a storm raging around the catholic church's child abuse scandal. pope benedict decided to clear the air while still in the air,

addressing the issue on a flight from rome. "it is a great sadness," he said, "that the authorities of the church were not sufficiently vigilant and decisive in taking the necessary measures." nasty issues of child abuse were not on the agenda during the pope's first official functions, including his meeting with the queen, at whose invitation the state visit is taking place. nor were they broached among the crowds of faithful, smaller crowds than were first predicted for this visit as the abuse scandal and other issues have apparently diminished the church's popularity. and for the groups of protesters who have vowed to dog this visit... >> i had been being raped for about a year by the time this picture was taken. >> reporter: pope benedict's words of remorse have not been enough. >> because i know there are children still at risk today and that is very disturbing.

>> reporter: the child abuse issue is a cloud hanging over this and every other foreign trip pope benedict makes. he finds himself increasingly preaching to the choir, while others ask not just for prayers but for answers. the most popular catholic in britain right now, in fact, may be susan boyle, the former choir girl from scotland. who became a worldwide sensation after her appearance on a british tv talent show. susan boyle, especially in scotland, is a hard act to follow for a pope but the pop star appeal of his predecessor. mark phillips, cbs news, glasgow. >> couric: and still ahead here on the cbs evening news, turning size into a plus. the fashion industry now courting full-figured women. but up next, republicans really need this woman to win if they have any hope of taking back the senate.

>> couric: in the battle for control of congress, republicans would need to pick up 10 seats to take back the senate. and the seat now held by retiring connecticut democrat christopher dodd is up for grabs. that brought president obama to the constitution state today to campaign for richard blumenthal. but his opponent, republican linda mcmahon, is ready to rumble.

>> you've got a front row ticket for linda mcmahon! >> that's awesome. that's awesome. >> couric: in the red corner, a political novice who managed to slam her competition in the g.o.p. primary. >> hi, i'm linda mcmahon. i'm linda mcmahon. >> great to see you. good to see you. great to see you here. >> couric: in the blue corner, richard blumenthal, who has been connecticut's attorney general for nearly 20 years. >> good to see you. >> couric: but in this anti- business as usual environment, his experience could be a liability. >> i'm trying to move away from the, you know, status quo, and the good old boy network kind of thing in washington. >> couric: are you concerned that you'll be seen as sort of the career politician candidate? >> people in connecticut know me. they know that i stood up to big tobacco, the utilities, all of those big and powerful interests that right now have gridlocked

and paralyzed washington. >> couric: we recently spent time with both candidates. with mcmahon in branford, a quaint town in south central connecticut, and with blumenthal, campaigning in stanford. connecticut is traditionally a blue state but it's known for its independence. the number of unaffiliated voters outweighs registered members of either party. now these two scrappy fighters are going head to head for those votes. mcmahon's business background is considered a boom for some voters. >> the climate in connecticut, jobs is a big issue and i think she knows how to create jobs. >> couric: she amassed a fortune at the helm of the world wrestling entertainment and has so far spent more than $20 million of her own money, dwarfing her competitor. >> i am very annoyed that linda mcmahon, she is spending that kind of money, all that kind of money, and is trying to buy this

election. >> i'm happy that i can fund the race myself, and it's money i've earned. >> no question that we're going to be outspent, but we're not going to be outworked. and we're going to have an election, not an auction. >> couric: meanwhile, mcmahon's criticized blumenthal for accepting money from special interest groups after declaring in past races he wouldn't. is that a flip-flop? >> i can't fight this election and this campaign with one arm tied behind my back. >> couric: both candidates are vulnerable, one because of the career she's had, the other for the military experience he never had. >> we have learned something very important since the days that i served in vietnam. >> couric: those words set off an online frenzy and a front page article in the "new york times," all pointing out that while blumenthal was in the marine core reserves during vietnam, he never actually served there. >> i'm a marine veteran. i'm very upset with what mr. blumenthal has done.

>> couric: how and why do you think that happened? >> on a number of occasions, a very small number compared to the hundreds of times they spoke about my military record, i inaccurately described it. it was unintentional. that's no excuse. i regret it. i take full responsibility, and i have apologized. >> and i guess blumenthal misspoke again. >> wow, i'm shocked. >> couric: the mcmahon campaign has made hay with blumenthal's gaffe but the democrats have been hitting back by circulating video clips of some of the roughest and raunchiest moments from the w.w.e. >> i said take it off! >> couric: many of them featuring mcmahon's controversial business partner. your husband vince is, how shall i say, colorful? >> that could describe vince. he is colorful. >> couric: he's been dogged by accusations of promoting steroid use. he's admitted to extra-marital affairs in the past.

his yacht is called "sexy bitch." >> colorful. >> couric: is washington ready for vince mcmahon? >> vince isn't running for the senate, i am. >> couric: running and gaining ground. >> linda! nice to meet you! >> couric: closing what was a 25-point gap in the polls last may to just a six-point spread today. >> we've always said that the polls were tight and that it would be a tough, tight, competitive race. but we're going to be talking about my standing up for people, and doing it here and in washington. and i think that is what people will hear and ultimately carry the day. >> couric: and we will see in 47 days. we'll be right back.

>> couric: a cartoonist from seattle has gone into hiding after getting death threats from islamic militants. it's all because of this, molly norris' idea for "everybody draw mohammed day." the satire was meant to support free speech. we've blurred the drawing because some muslims have found it offensive. at the f.b.i.'s urging, norris has quit her job at a seattle newspaper and changed her name. it wasn't a drawing but a doctored photo that caught up

with egypt's president. two weeks ago, hosni mubarak was at the middle east peace talks at the white house. later, egypt's state-run newspaper ran a photo that showed mubarak walking ahead of the other leaders as if he were heading the talks. but then a blogger found this photo taken by the white house press corps. it turns out mubarak was actually behind everyone else. the newspaper had no explanation but removed the doctored photo from its web site. hybrid and electric cars are all the rage these days, but in washington today, a car that runs on ordinary gas or ethanol won a $5 million prize for high- mileage vehicles. it's called the "very light car," appropriate since it weighs just 830 pounds, about a third of a regular car. it can carry four people and get 102 miles per gallon from its one-cylinder engine. now the question for the ages: what is the price of love? british researchers claim to have the answer.

they say unattached singles typically have an inner circle of five close friends but when they find the special someone the number falls to four friends, including the new romantic interest. so the price of love? well, you do the math-- a loss of two close friends. up next, why bigger may be better when it comes to the fashion industry. ,,

alleged plan... that was almost foolproof... next. a. finally >> couric: and finally tonight, it is fashion week here in new york city, and that means plenty of tall, lanky models on the runways sporting what will be hot or not next spring. but move over, waifs. some real women are sharing the spotlight and the industry says that's a real plus. here's michelle miller. >> reporter: fashion week is all about setting trends, and this may be the newest. >> ladies, right here. >> reporter: for the first time

ever, women with curves have a catwalk to call their own. >> it's about time to see a runway show that reflect the diversity of size that is america. >> reporter: super plus-size model lizzie miller is making her new york city runway debut. >> i've never been a stick-thin girl and i'm never going to be that and i finally a couple of years ago was okay with that. >> reporter: and everyday men and women seem to agree. >> i love my curves. i have them and i'm keeping them. they're not going anywhere. >> it's just something to hold on to, you know what i mean? >> reporter: turns out most people do. 67%, 75 million american women, are so-called plus size, a size 14 or larger, and only 17% of women's apparel is made for them. but that's changing. plus-size clothing sales are expected to increase by more than 13% through 2014. that's $4 billion up for grabs. >> we've got sort of reality meeting necessity, the fashion industry struggling, needing new business, and recognizing that there is a plus-size woman out

there who is in some ways getting plusser. >> reporter: fuller figures are starring in hit tv series and movies. >> because, like myself, we have a hard time finding trendy clothes to wear. >> reporter: and department stores are trying to deliver them. j.c. penny's store manager don't give specifics. she says plus-size sales are exceeding expectations. >> finally we're giving them that fashion item they've been looking for and asking for. >> reporter: and some high-end designers are catching on. full-figured women demanded attention. now, they're getting it. michelle miller, cbs news, new york. >> couric: and that is the "cbs evening news," for tonight. i'm katie couric. thanks for watching. i'll see you back here tomorrow. good night. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org

your realtime captioner is your realtime captioner is your realtime captioner is a district attorney used to your realtime captioner is linda marie macdonald. caption colorado, l.l.c. victims. the choice word a district attorney used to describe four women accused of posing as pipeline explosion victims. another growing concern in the wake of the explosion: how or can the city of san bruno cover the costs? >> why your next fender-bender may come with a bigger price tag, the clean-up cost. good evening, i'm dana king. >> i'm allen martin. well, you don't often hear public official use the word "vermin." that's exactly what san mateo's district attorney said today when talking about two women accused of trying to cash in on the pipeline explosion that has killed at least four people. jennifer mistrot reports, prosecutors hope the arrests will